time to deliver

Today ends sales for T+3 settlement regarding the rights issue cut-off funding. The event brings closure to a turbulent time for shareholders and the company itself.

Over the last few years key non public stakeholders have handsomely fed off the revenue stream generated by this business:

- Doctor partners: the revised 65% EBIT based remuneration model significantly increased doctor partner returns, where doctors are now making two/three times their old pay, some exceeding $1m pa

- Banks: during the covenant breach period ANZ/Westpac charged high rates (10%+) and additional penalty charges, which delivered them a small fortune in returns on their shared debt funding positions

- Directors: none of the Directors were dismissed due to the catastrophic events of 2008-2010, where over $60m in goodwill was written off due to inflated doctor practice acquisitions made with shareholders funds

- Third party advisors: the likes of Credit Suisse and the company's lawyers have pulled in generous amounts for various projects, some relating to failed sale programs that delivered nothing for shareholders

Which leaves us with the public shareholders that subscribed on float in 2004 at $2.30 a share.

The company has again been entrusted new shareholder funds. An additional $27m raised and to be fully banked by Monday has been given to the company, once more.

It is now time for the Directors and management team to deliver.

It is now time for the company to serve the stakeholder that matters most, the beaten up shareholder. EBITDA has collapsed from a peak of around $36m several years ago to a Director forecast of $25m for 2013. Normalised EBITDA has fallen for approximately the last 3 years. The impediments of old, such as problems with balance sheet, doctor partner remuneration etc, are no longer present and therefore not there as an excuse.

The company now needs to act. It now time to deliver robust shareholder returns.

Nothing less than solid EBITDA and Revenue growth will suffice.